Why Seagate Technology, Interpublic Group, and Community Health Systems Slumped Today
Wall Street was in a celebratory mood on Tuesday, with gains throughout many key financial markets. Climbing stock prices came in part as a result of a rebound in commodities like oil and base metals, and an overall positive trend among companies reporting earnings today supported investors' generally upbeat view of the economy. Yet even though the mood was mostly positive, some companies missed out on the rally and reported bad news that sent their shares lower. Seagate Technology (NASDAQ: STX), Interpublic Group (NYSE: IPG), and Community Health Systems (NYSE: CYH) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.
Shares of Seagate plunged 16.5% after the company reported fiscal fourth-quarter financial results and announced a leadership transition. The data storage specialist said that revenue fell more than 9% from the year-ago quarter, dramatically underperforming the smaller drop that most investors had expected, and adjusted earnings came in about a third less than the consensus forecast among those following the stock. Seagate also said that CEO Steve Luczo will leave his role at the end of September, giving way to current COO Dave Mosley and taking on the role of executive chairman of Seagate's board. With the move, Mosley said he hopes to "lead Seagate into the next era of leadership in the storage technology market," but investors didn't seem so upbeat about the company's prospects in light of recent trends.
Image source: Seagate Technology.
Source: Fool.com
Seagate Technology.Holdings plc Stock
The stock is one of the favorites of our community with 26 Buy predictions and 4 Sell predictions.
As a result the target price of 103 € shows a slightly positive potential of 7.89% compared to the current price of 95.47 € for Seagate Technology.Holdings plc.
